Unaccounted gas
April 25, 2010
LAHORE: Sui Northern Gas Pipeline Limited (SNGPL) is pressurizing Oil and gas regulatory Authority (OGRA) to increase the benchmark value for UFG (Unaccounted for Gas) from five per cent to seven per cent, which will provide the company Rs5bn as reimbursement.
The benchmark for UFG, which includes gas theft and its leakage, was nine per cent in 2001-02; it went down to 6.5pc in 2003/04 because the company didn’t control its theft and leakage, but then, again due to company’s manipulation, it was increased above 6.5pc in the subsequent years, SNGPL sources told The News. In 2007, OGRA again set it on 5pc but now SNGPL is of the view that it is too low a benchmark to meet with and it is going in the loss.
OGRA is of the view that the company is unable to control its theft and leakage, which is solely with the connivance of company’s higher and lower staff, so, the benchmark, is not likely to go up from 5pc. Loss due to theft in SNGPL is around Rs16 billion and Rs10 billion in SSGC (Sui Southern Gas Company).
SNGPL is demanding for 20pc increase in the salaries of its staff in 2010-11, whereas it has failed to stop the theft in the company’s jurisdiction. SSGC and SNGPL demanded a raise of 23pc in salaries in 2009/10 but both were allowed 8pc increase.
SNGPL is demanding Rs20/mmbtu rise in the consumer tariff keeping in view the prevalent gas theft scenario. The sources said SNGPL’s administration failed to control theft and now to conceal its inefficiency, it wants a raise in benchmark and consumer tariff.
SNGPL is also demanding from OGRA Rs13 billion to expand gas distribution system in one year. The sources said why the company needed a gas expansion system when the gas resources in the country were already dwindling. The sources further said the company should have strived to import gas and put a ban on speedily increasing CNG network. Even then, the gas needs won’t be fulfilled in the coming years.
National Assembly Standing Committee on Petroleum and Natural Resources, in its meting with the SNGPL’s top officials last week, also strictly forbade the company to increase consumers’ tariff and it also prevailed upon it to decrease its theft and leakage in any case.
The benchmark for UFG, which includes gas theft and its leakage, was nine per cent in 2001-02; it went down to 6.5pc in 2003/04 because the company didn’t control its theft and leakage, but then, again due to company’s manipulation, it was increased above 6.5pc in the subsequent years, SNGPL sources told The News. In 2007, OGRA again set it on 5pc but now SNGPL is of the view that it is too low a benchmark to meet with and it is going in the loss.
OGRA is of the view that the company is unable to control its theft and leakage, which is solely with the connivance of company’s higher and lower staff, so, the benchmark, is not likely to go up from 5pc. Loss due to theft in SNGPL is around Rs16 billion and Rs10 billion in SSGC (Sui Southern Gas Company).
SNGPL is demanding for 20pc increase in the salaries of its staff in 2010-11, whereas it has failed to stop the theft in the company’s jurisdiction. SSGC and SNGPL demanded a raise of 23pc in salaries in 2009/10 but both were allowed 8pc increase.
SNGPL is demanding Rs20/mmbtu rise in the consumer tariff keeping in view the prevalent gas theft scenario. The sources said SNGPL’s administration failed to control theft and now to conceal its inefficiency, it wants a raise in benchmark and consumer tariff.
SNGPL is also demanding from OGRA Rs13 billion to expand gas distribution system in one year. The sources said why the company needed a gas expansion system when the gas resources in the country were already dwindling. The sources further said the company should have strived to import gas and put a ban on speedily increasing CNG network. Even then, the gas needs won’t be fulfilled in the coming years.
National Assembly Standing Committee on Petroleum and Natural Resources, in its meting with the SNGPL’s top officials last week, also strictly forbade the company to increase consumers’ tariff and it also prevailed upon it to decrease its theft and leakage in any case.
